The Governance Section of an Investment Policy Statement for Individual

question 57

Multiple Choice

The governance section of an Investment Policy Statement for individual investors typically contains

• A) assigning the responsibility for determining investment policy.
• B) the review process for the IPS.
• C) assigning the responsibility for risk management.
• D) the review process for the IPS and assigning the responsibility for risk management.
• E) All of the options are correct.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Inventory Supplies

Items or materials kept on hand by a business for the production process or for sale.

Unearned Revenue

Money received by a business for goods or services yet to be provided, recorded as a liability until earned.

Liability Account

An accounting record that shows the current and future financial obligations a company owes to others.